>> below 2%. which for those of you that didn't mansion #manage to remortgage, if you're not under water, give you potentially another opportunity to dive in. >> that's it for us on "power lunch." >> "street signs" begins right now. and welcome to "street signs" where the family is all back together. and what a day for it. between walmart, kellogg, europe and china, we're back to our world and wall of worry. we're going to bring you the key events. would you believe a labor union is working with wall street? they are over american airlines. it's all about a possible deal with u.s. airways. their banker here exclusively. plus, two spurltives. we're going to take you to the world's biggest car show. and show you the world's biggest nachos. mandy, it's not routine. oh, i'm the world's biggest routine fan. about the only positive thing we

can say is, well, it's not as bad as it was earlier. meantime, the dow was down about 183 points earlier in the session. right now however it is still on track for its biggest drop in two weeks. both the dow and the s&p 500 are down for the third time in four sessions today. both headed for their biggest monthly drop since last september. where the numbers are looking even uglier for the nasdaq composite down for four straight days now back below the 3,000 mark and could be headed for its lowest close since march 7th. brian. >> not great. mandy, thanks very much. well, it is not such a happy monday for your money thanks to a global cornucopia of negative headlines. with that in mind, here is your trip briefly around the world of worry. first, we've got walmart's bribery allegations right here in the states. you've also got kellogg cutting its 2012 profit outlook. then we're going down to latin america where ypf, remember that is the joint venture with spain -- or it used to be. a three-year low on argentina's

takeover move. the spanish government condemning argentinargentina's effort. the dutch government is collapsing. and new data shows german manufacturing shrank at the fastest rate in a few years. that's not all, folks. chinese manufacturing data may be a little better than expected but still below 50 which means it's in a contractionary range. ie, disappointed. pretty big wall of worry. let's get to bob and rick. bob, back to you. you've talked about spain and supermario in europe. i'm not sure supermario can solve what's going on in europe right now. do you think he can? >> potentially. but they're going to have to make very hard decisions. and the elections in france say we don't want to make decisions. that's the whole point about what happened today, brian. no matter who wins the french election, ultimately the loser is austerity. so the socialist prime minister isn't going to want to make tough choices only when the market forces him to do that. and that may well indeed happen.

that's why we're weak today. with that said, the world is not the same. we are down, but we're not down quite as bad. here's where we are for 2012. spain obviously having very, very big problems down 20%. brazil just take correction territory down 10%. that just happened today. obviously the ypf story isn't helping latin america. germany's not far. but look, hong kong is not nearly as bad. and the united states here the s&p 500 only down 3.9%. i'm not saying the u.s. is immune to the world's problems, but if you don't notice, we're less bad than the rest of the world. you're not paying a lot of attention. this is happening even as that 10-year as we just pointed out in the last hour just dropped below 2%. so we do have a lot of things going on here. but look where we are. not down nearly as much. >> we win the ugly contest here, bob. rick, in the meantime you have benchmark yields around their lowest in nearly two months. how much of that is due to worries in europe? >> i think a very significant

portion of that is europe. and i think all you have to do is not look so much where you are in relation to the highs as bob just pointed out but just look at the cac, the french stock market year-to-date now down on the year. that's the second biggest economy in the euro group. and i would contend, brian sullivan, that i wouldn't call that a wall of worry. i would call that a wall of facts. >> well, call it a wall of facts. call it a wall of worry. call it a small world after all. call it wally world. the point is when we look around that world, it looks pretty scary. when i look in europe and i see that the dutch government literally is collapsing, that a guy that wants a 75% income tax rate on the top end in france won the first round of the elections and would then be directly in a collision course with angela merkel if he was indeed elected -- that's some scary stuff. >> i agree. >> that doesn't bother you? >> well, it isn't worry. it's facts. it doesn't matter whose government is in charge.

the real issue to focus on is the people of any country are never going to volunteer for austerity if it's not explained to them that the alternative is much uglier. and politicians as a rule don't like to tell about facts. >> well, it's good to worry about facts than worrying about nothing i guess. the next question is, are investors overreacting to all the negative headlines? let's bring in louise cooper, bgc partners market analyst and jason, director of investment strategy. it is ladies first always on "street signs," louise. we've just been talking about the fact that it feels like leadership in europe is either lacking or crumbling just at a time that, correct me if i'm wrong, europe really needs good leadership? is that how you're reading it? >> that is completely spot-on. if you look -- we're a couple weeks away now from the greek elections. what is expected is a sort of fragmentation. lots of small parties winning seats. and a lot of parties that will

play to the anti-austerity measures. that's what we're seeing. so we're seeing a fragmentation of political parties. what are we seeing in france in this first round of presidential elections? we're seeing 20% of the vote go for la penn and to europe and to eu party and over a third of the vote go for the nonmain two parties. we're seeing a fragmentation of the political cause and anti-europe national tendencies. none of that is good news for the environment. >> i don't know how to say a mess, but that's what france is. jason, a lot of your clients are probably watching the show right now and thinking it's nice what's happening in europe. but why do i care? when they call you, what do you say? when they ask you about the french elections or the government, do you ignore it? if so, what do you do? >> sure. there's a lot of uncertainties sitting out here on the debt

side, on the political side. we look at it from just a big picture backdrop here. we're going through a period of below normal growth. economically speaking profitwise across the board it's below normal growth because we're having to delever the entire financial session. we're now doing it at the government level in europe. that's a lot of pain to go through. it can be done gradually through time, but it makes growth slower. when growth is slower, well, it's going to be more volatile through that process. because you're closer to zero, it's easier to have worries -- >> hang on. let me jump in there and get back to what brian was asking. what do the financial markets need to know right now? what is their biggest concern whether it's europe, elsewhere in the world, and at the end of the day we're still the cleanest dirty sheet in the dirty laundry basket, are we still better off than them? >> look, the markets want to know what they need to know to move forward is all these

problems are going to magically go away. unfortunately that's likely not going to happen. we're going to go through fits and starts. we had a good start going into the end of the year and the beginning of this first quarter. but now perhaps we're entering a period of growth scares, a little bit of a fit as we go through the second part of this year. that's going to happen and oscillate back and forth as far as the u.s. versus international markets, yes, right now we are the better shirt because we've been employing the best policies to develop our growth. but we have our own fiscal issue. we have our own debt pile we have yet to deal with. and likely as we move towards 2013 where we have a two plus almost 3% fiscal headwind we're facing, it's going to become more pronounced. >> there's two schools of thought. there's the school of thought that what is bad for europe to mandy's point be good for us because capital will flow here because we are the least dirty of the countries if you will. and then there's a school if europe has a big problem because germany is actually a pretty big

country from what i understand, that's going to drag down the entire world including the u.s. which school are you in? drag down or dirty laundry? >> i kind of like that idea drag down or dirty laundry. i think it's never great to bet against the u.s. economy. experience teaches you that. but on the other hand europe is a very large economic zone. today with the release of the pmi data, i think we will start to see these growth worries really come out. we've had in italy and spain two new governments effectively in the last few months. they have come in, the first thing they've had to do is impose austerity. that austerity's being imposed. there will be a time delay as to the effect on the economic growth for those two countries. we are starting to see the signs that spanish and italian forecasters -- spanish italian growth or gdp figures are probably too optimistic. that means all the economists and bond investors will take a red pen to their budget deficit figures. that is when it all gets very

scary again. and to me this is the coming couple of months is the crunch point. this is when we start to see the data that suggests the recession in europe will be a lot worse than expected. and then that means that the debt figures start to look hideous. this to me -- and also we have this very difficult political environment where we're not seeing the leadership required. all of this makes a very tough few months. put your hard hat on. it's going to get brutal out there. >> jason, would you be putting your hard hat on, or would you be taking the opportunity of these dips and buying more? >> we're not taking the opportunity to buy more yet at this point in time. if it dips further, perhaps we'll start looking at it. right now we're seeing very much the same as what your other guest is seeing is that these economic figures it's just now showing up in the surveys, it tends to develop over time and there's a lot of fallen effects

concerns about the debt concerns and austerity as we go down the line and look at the fiscal issues in these nations as the economy softens a bit -- >> jason, we have to leave it there. we'll get you back on soon. i apologize. louise, hard hat, cooper. >> it's a european hard hat. it's very stylish. >> it's all lime green and cleans up poodle pop on the -- >> up next on "street signs," by now you have heard about the walmart scandal. will the allegations of bribery and corruption really hurt the bottom line? or will it just be a black eye? >> oil prices lower than it was a year ago. why one trader says we are going to be south of $100 by the end of the week. wonder why.

check out shares of gilead sciences. benefitting from the pain of a competitor. the hepatitis c treatment did not come in as some had hoped in clinical trials and this is seen as a positive, mandy, for gilead's own hepatitis c treatment. that stock one of the rare winners today. also, do check out this name. ardea biosciences. it's up 51.49% to be exact.

astrazenca agreed to buy the company. >> brian shactman here. we've got lots of brians lying around. a realtime market flash. >> too much bs during ss. i'm watching d.r. horton. they had impressive numbers, right. and they were positive in the early market. i want to look at an intraday chart because they have now gone negative and are selling off. d.r. horton moved from the short-term buy list at deutsche bank. they were up at the open and now down more than 3%. back to you. >> all right. brian, thank you very much. no matter what she says, good job. all right. big story out there today. it involves american airlines and u.s. airways. in fact, there was a rally downtown today because the transport workers union and two others representing the workers of american airlines are concerned about american airlines bankruptcy proposal to layoff as many as 13,000 jobs. >> uh-huh. >> however, u.s. airways, which has made no secret of its desire to buy american airlines has said if they are able to buy american, they would not lay off

all those jobs. those union leaders today in new york city for a hearing on american airlines' bankruptcy proceedings. >> i got to look at what's better for the employees. i mean we've got 55,000 employees that will be impacted. i believe american jobs should be kept in america. and that's not happening under the american airlines plan. what i was impressed with the coo from the u.s. air, he says american jobs for america. >> and joining us now is peter koffman. there's also something else besides the news itself, right. it's interesting in a way that you, wall street guy, right, a banker, working with a big labor union -- some people would say that's not possible in this environment, but you guys are working together to deal with american airlines. how has it been this sort of merger of you guys and the unions? >> brian, it's been great. you know, this is an opportunity for us to do something a little

bit different. we are usually the 1%ers helping the 1%. here in the teeth of a lot of adversity, jim little you just showed and the tw leadership decided to do something very, very smart. they put together a dream team of advisors if you will. top economists, leading labor lawyer, super bankruptcy lawyer and of course gourd yan group as the investment banker. we've been at this hard. and we're working very constructively together in this very difficult situation. >> i'm curious to know, peter, how american airlines feels about you working with the union and independently going and doing some negotiating on the side with u.s. airways about a possible merger? >> well, you know, this is not -- american airlines has taken a playbook let's use the bankruptcy law to crush poor old labor and leave them as road kill through the bankruptcy process. we preach options and optional tito all of our clients including this one. and we're not one to sit by

passively. so we've been taking some active steps, the advisory team with the twu, one is to be negotiating ourselves with u.s. air about a merger. we're very open to a merger with u.s. air if it's going to be better for our workers. and we're all about options. we're also in bankruptcy court today fighting americans' attempt to crush the labor contracts. and we're also negotiating with american about how to improve the original distasteful unacceptable deal that american put on the table. and it is improving. >> peter, you clearly feel that the unions have -- and they have, to be fair, they have given back a lot not only the last year or two but the last decade, right? pay scales have gone down. do you feel they've given all they can? they're done giving, right? >> i think they're done giving. billions in givebacks over the last nine years to be constructive here. >> when do you feel a merger could potentially take place?

>> a merger could take place in bankruptcy or after bankruptcy. that's all very open. we're all about creating options for the union. the union's going to have a chance to vote on whatever improved deal we're able to negotiate with american. and, you know, i'll note that the bankruptcy scenario, the bankruptcy forum, is very horsetive historically to labor. so the workers are going to have to take that into account when they decide up or down on that independent american proposal. but we're all about options. and certainly even the fact that we're having negotiations with u.s. air is helping us in negotiations with american. >> thank you very much for joining us. >> yeah, peter kaufman. the fight is not over yet. thank you for joining us. >> you bet. >> just ahead on "street signs," bacon a difference. >> and we're reading up on the big pop for barnes & noble. we'll give you the real story behind that stock move. plus, it's been a really big week. and it's going to be an even bigger week ahead. is big ben going to calm our

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welcome back to "street signs." brian shactman here. looks like the deutsche bank short-term buy list making some other action here. news corp added to it. the stock not yet in positive territory, but it's bouncing. look at the intraday chart after that news came out. down now 0.06%. watch nws. it's not hard to find a disaster du jour. there's a cornucopia of disasters today, folks. herb hand-picked one special disaster. >> just one. and that would be radio shack. the stock trading at a 19-year low today. on the eve of tomorrow's earnings report a number of analysts actually came out this morning, interestingly enough, and downgraded -- or cut their price targets on the stock. one was ubs. i found this interesting, we see a couple positive catalysts but

a low likelihood of either. which was one of my favorite lines in that. and another analyst said he believes further downside revisions are likely. >> i do need to correct you on something. radioshack can't trade at a 19-year low because a few years ago it was known as handy corp. but you just noted. i was being prickly today. do you know where radio shack is based? ft. worth, texas. >> a few years from now we'll come back and visit that one. >> i'm waiting for my din sgler i'll give you back the great dinner you gave me. >> thank you. i look forward to it. herb. you're a good friend and valuable part of this program. >> maybe i'll get an invitation to the next one. >> herb, you're a good friend and a valuable -- the stock down about 3%. maybe brian shactman at the market flash desk can figure out

what's going on. barnes & noble, we did figure this one out, that stock has been moving pretty good today. this is your segment. >> but it says brian. pretty much everything says brian. do you know why? i've been away for three weeks and suddenly it's your show. >> suddenly? >> i'm sorry. it's been officially made brian's show because every single store says brian. >> i do what i'm told. that sunshine stock is your segment. >> i'm going to takeover. am i allowed to? may i get permission to take over? the stock is heavily shorted. short squeeze is very likely, bks up over the past year by up 15%. >> and we have fresh bake -- that's a joke, mandy. >> not a very funny one. we have some fresh bacon news coming to you hot and fresh. take a look at smithfield food shares down just a small strip today. excuse the pun. i'm going to give you this read because i can't bear reading the bad puns.

>> it's true. and brian shactman on the always responsive market flash desk has found something -- that was quick, brian. >> i'm here to please. sold over 11 million shares at market prices on april 16th. so a lot of float here and even more after dumping 11-mill in the market. >> the most underpaid ceo of all time. that's what he called himself. >> he could argue that. i won't. >> there you go. >> thank you. that is fast. that's why we call it market flash. you know what goes great with bacon? the answer when we reveal the cheesy story of the day. >> and why the happiest place on earth is about to get a little perkier, livelier, jumpier. "street signs" back in a moment. we're lending an , in communities across the country. fro omrevi htalielzeping t a neigbrhbooklyn..or.ho financing industries that are creating jobs in boston... providing funding for the expansion of a local business serving a diverse seattle community... and lending to ensure a north texas hospital

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welcome to the world leader in derivatives. welcome to superderivatives.

welcome back to "street signs" everybody. it is a busy start to the week. let's get you caught up on today's street talk. let's get straight into what's happening with the markets. we are in selloff mode. but as we saw just a moment ago, we're definitely off the lows of the day. nonetheless, what sparked this were more fears coming out of

europe weighing us here in america down. exxon mobil and jpmorgan the only dow stocks trading in the green right now. the s&p 500 for its part is now down 4% since the beginning of april. there are some winners out there. so let's find them. later on in the show we're going to be looking closer at brinker international. what do they do? chilies. check out shares of apple. that stock has been bouncing between positive and negative territory ahead of its earnings report. those are coming out tomorrow. apple, by the way folks, the stock apparently that could do no wrong is down about 10% since hitting an intraday high earlier on this month. so, what is a trader to do on a day like today? let's bring in holly liss. great to have you with us. i was speaking with bob pisani earlier on today and he was saying, okay, yeah, so we're down. but it's not aggressive selling. it's not on a huge amount of volume. and we are not down in the broader context of things as much as many other markets

overseas. is that how you're reading it as well? >> i am. we have seen low volumes in general in stocks. but we're not necessarily seeing the same thing in the futures market. but in general volume has been low over this pullback, which tends to be lacking of a confirmation indicator. there's a lot of people that i talk with that are thinking that this pullback is actually a buying opportunity. they wanted to buy it on the way up. they never got those pullbacks they were looking for. so they're thinking this could be it. having said that, the technicals are looking a bit grim. like i said, the volume is higher in the stock market itself although not in futures. but you are breaking some key technical levels particularly in futures around 1289, 1259. those two levels if they continue to move lower could indicate that lower prices are still in the offering. >> in light of that, holly, would you be waiting to buy or starting to nibble a little. and if so, what? >> given it's hard to actually pick the low price or high price conversely, probably getting in and nibbling is a little bit better averaging in here. you may want to also look into

fixed income markets. you do have 10-year yields below 2%. a lot of people concerned about that. but we've seen those even lower at 167. there's no reason we can't go there again. so you may want to diversify a little bit. maybe out of some of those equities and into some fixed income investments. >> i'm going to put you on the spot here. i don't know whether you can speak on walmart, but we have to bring it up considering it's a big story and having a big contributing factor to the losses we're seeing on the dow today. there were two camps. citi group saying this is a buying opportunity. and then you have for example deutsche saying this is a little different from some of its past problems. this is actually material. what do you think? >> i think there's probably better people to pick individual stocks than i could. but i would say that there are a lot of people that thinking the pullback is a buying opportunity certainly in the broader market sense. >> holly, great to have you on the show. thank you very much. let's move on and take a look at the final oil trades. crude falling about 1% on the day. one trader saying oil could head south of $100 a barrel by the

end of this week. let's bring him in. the man who made that bold call is a friend of cnbc, founding partner at again capital. john, why do you say we're going to head south of 100? >> obviously we came in today under pressure, mandy. and the concerns about europe you've been talking about i think most of the day here are part of the equation. also, i think the fed will leave us hanging on tuesday regarding more quantitative easing which would have been supportive for oil. and then finally on wednesday i think the inventory report consistently large bills of crude oil for the past several weeks that should all combine to get us a print under 100. >> you mentioned europe. but you didn't mention china which i think is interesting considering they are the world's second largest economy and one of the world's biggest gobblers of oil. are you concern eed about the manufacturing slowdown there and concern for oil? >> very much so. we have been for a while. certainly the focus there besides that is their beijing

auto show which we are getting a reminder that their automobile consumption is skyrocketing. so there's a bit of a reminder that there's an underlying kwaul for refined product there. but, yes, that is another one of the elements that should help us push below 100. also the technicals are looking very negative as well. >> do you have the guts to go short oil, long nat gas right now, john? would you do that? because the spread has never been wider. >> in fact, brian, we've been saying that natural gas looked to put in a bottom last week. we think it is a buy here. and, yes, i guess we are calling for a short on the oil. so, yeah, that is a good trade. i think you saw natural gas the may contract rally strongly today back over $2. >> you've been road kill if you've been doing that trade for the last few months. >> absolute road kill. but i do think this is the time period. interviewed by patty a few weeks ago i thought this would be the time period when natural gas would bottom because some of the vagaries and technical aspects

of the supply market. the local basis points around the country, you're going to see wholesale selling of natural gas. that should be coming to an end soon. we'll see stabilization and prices head back higher. >> john, good to talk to you. >> thank you. >> let's go to the market flash desk and brian shactman once again. >> i want to point out, guys, we are now down less than 100 points in the dow jones industrial average. our low about 180 plus. exxon mobil on an upgrade that's been known for a couple hours. but jpmorgan, verizon and chevron now in the green. >> it's not our job up here to say what's going to happen or make predictions, but i'm going to make a prediction, we're going to end higher or lower today in the dow. >> that's why you get the big bucks, purple tie there. >> if you win, you take us out. >> what if we end completely flat? >> that's a push. that would be a push. >> stranger things have happened. >> brian, thank you very much. did you think today was big

newswise? you haven't seen much. we have a big week ahead. here's your road map. tomorrow we get the latest read on housing with the march new home sales. the fed also kicks off a two-day meeting followed by the rate decision and the ben bernanke news conference on wednesday. thursday, we get the weekly jobless claims numbers, right? and on friday we get first quarter gdp. let's hope the arrow is actually going up like that graphic implies. let's break down this big week with u.s. economics editor for the economist and cnbc contributor. always enjoy reading his stuff. greg, thanks for joining us. >> hi, brian. >> i think the hard part of this week is not having news. it's deciding what's important, right? >> yeah. >> we have spain, european problems, dutch, china data, german data, walmart. all this stuff. to you, what is the biggest one or two pieces of news this week? >> well, caveat first by saying i'll talk about the stuff that's actually on the schedule, but you just rattled off a whole bunch of stuff that nobody had

scheduled. you know the problem with the spain bond auction, the news on walmart and so forth. with that caveat, i would say the marquee event's got to be the federal open market committee meeting which runs over two days, tomorrow and wednesday, we'll get the news and press conference a little after 2:00 p.m. wednesday. here's what i'm thinking. the main event will be the statement. and i do not expect any big change from that. you will not get an announcement of a third round of quantitative easing, qe-3. and you will not get change in the fed's guidance. they expect rates to stay near zero until the end of 2014. however, there's a potential of surprise from the economic projections that they'll be releasing. i think you'll see a lowering of the unemployment rate and perhaps a nudge up in inflation rate. that will send a bit of a hawkish signal to the markets. say, maybe the fed will have to tighten sooner than we thought. i expect chairman bernanke in the following press conference to actually push back against that. and if anything give us somewhat dovish interpretation of the economic developments recently.

>> and of course wall street will take that and put it into whatever combination it wants to. >> yeah. >> what do you think is the single defining or deciding factor when it comes to whether or not we're going to do qe-3? >> well, of course the fed's looking at a ton of stuff. but if i had to pick one thing right now, it would be the employment numbers. we had a three or four month run when we looked like an economy genuinely picking up steam, 200,000 per month or more. march it suddenly loses that theme. you would have to kind of conclude that it is not because also industrial production came in light and then just in the last few weeks we've seen an up tick in unemployment insurance claims. and actually last week was really quite of a disappointment because revised up the level significantly. so i think if the fed sees two more months of numbers that are as poke ki as what we saw in march, that definitely puts qe-3 on the table. >> so just to be clear, you think if we get a number say -- i don't know, mid low 2s for

our -- trying to think of that -- what would be your number that would convince you the fed is doing qe-3? what would it have to be for you? define that. >> okay. i would say less than 100,000 number on nonfarm payrolls for april and may definitely puts the odds on qe-3 over 50%. >> uh-huh. >> by that point you can no longer say, oh, it's just, you know, a bad number, just warm weather. there really seems to be a soft patch developing. by the way, i would say this makes the thursday number on unemployment insurance claims especially important because that will be an important signal to tell us whether we are actually at yet another inflection point. >> right. thank you very much for that. by the way, pokey can be very delicious. in hawaii i ate a lot. >> you did. >> various other combinations. >> spam. >> and spam. better than you think. coming up -- oh, by the way, got full coverage of the fed tomorrow right here on "street signs." but we've also got disneyland getting a caffeine kick. finally, something for mom and

dad. >> but next, the fallout over the alleged corruption scandal at walmart and expert in anti-bribery laws points to the walmart what they've built in the shadow of mexican pyramids as a possible red flag. more on the walmart story coming up. we like solar downstream and we also like residential retail solar. we are over half the country today is in the money for solar. >> we're on pace to see earnings up 6% from a year ago for the first quarter. >> 50% returns, how does that happen? >> this falls into the category what we call panicked headline investing. we love buying stocks when we think the sellers don't care about price. in this case, bp's a classic example. ♪ i'm making my money do more. i'm consolidating my assets. i'm not paying hidden fees or high commissions. i'm making the most of my money. and seven-dollar trades are just the start. i'm with scottrade. i'm with scottrade.

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we let you be everywhere at once. innovations like these are extending our reach so you can extend yours. and now, even at 30,000 feet you can still touch the ground. coming up on "closing bell," is this selloff a buying opportunity? we've got all the angles covered. plus, netflix set to report earnings. should you buy the stock ahead of the results? we've got a stock brawl coming up. we also have instant analysis and investor reaction to earnings from both netflix and texas instruments. but first, more "street signs." >> scott, thank you very much. well, the alleged walmart

corruption scandal pushing the stock slightly lower today. it's now down for the year. walmart accounting for about 20 points of today's drop in the dow. shares of wallmex also tanking after the "new york times" reported allegations of bribery at its mexican subsidiary. walmart now facing scrutiny from wall street to washington because if the report is true, the company could be in violation of the u.s. law prohibiting bribes to foreign officials known as the foreign corrupt practices act. and our own eamon javers joining us from washington. all right, eamon, cynics may say par for the course. companies pay bribes in nations like mexico and others that are developing, right? but others say no. >> yeah, look, brian -- [ overlapping speakers ] >> well, look, that's a reaction from a lot of people saying that the u.s. law here is just simply naive in terms of doing business around the world. but we're here at this conference by trace international, it's one of the leading nonprofit groups advising u.s. companies on how to deal with that foreign corrupt practices act and stay

out of trouble, stay on the right side of the law. we've heard from germans, nigeria nigerians, mexicans, they've got representatives from over 130 different companies here all sort of walking through what the implications of the law are. one of the experts who's speaking here is a lawyer from mexico city who told me that in terms of the walmart story, he first got an indication that walmart had at least special access to lawyer makers in mexico in terms of zoning when he saw walmart put up a store near one of the pyramids. >> they got permits at that time and store got built. there's a lot of opposition from the community artists and people from around there. >> i also talked to him a little about the question you asked,

brian. is this simply the way people do business in mexico? >> it's a way of doing business in mexico. but there are other ways of doing business in mexico. the u.s. law protects american companies through the chapter 11. with that protection, american companies have to comply with u.s. laws when doing business abroad. >> and, brian, just as we're talking here i'm getting word in my here from producers in new jersey that we're learning now members of congress are now calling for a formal investigation into these allegations. that will be something to watch. from a scandal management perspective walmart will not want to see because that's when the details continue to drip, drip, drip over time as congressional investigators get those documents and that's something they'll deal with. more detail as soon as we can bring it to you. >> it feels there's more detail to come out in this story, doesn't it, eamon? there are other questions that still have absolutely no

answers. for example, potentially if these allegations are true, how much is it going to cost walmart? it could be very legally costly. how many heads could role? will there be jail time for certain senior executives? >> that's right, mandy. one of the interesting things here is i talked to a lawyer who just flew in for this conference from shanghai. and one of the questions that people are raising is what were walmart's business practices elsewhere around the world and third world countries? is this a problem just confined to mexico, or is this something walmart was allegedly doing in countries around the world? that's a question unanswered as of right now. if there's a congressional investigation, you can bet that's where they're going. >> goldman sachs had a note out today saying on the average companies that get whacked with a probe ends up costing them 9% of their ebitda over the three years, which is the average length of a probe. again, 9% of walmart's ebitda is a significant -- this would be the biggest -- the costliest

lawsuit or charge in the history of corporate america. if it's an average. >> we've seen huge settlements from the department of justice in recent years. they're really stepping up the enforcement of this and the size of those penalties. the key for most companies though if they can argue they have a good robust effort in place, they gave the people training, told them the rules, walked everyone through it, in that case they might stand a better chance in front of the department of justice. it's not clear that walmart has a story that's add gooz as that to tell going into the department of justice now. >> eamon javers, thank you very much for that. coming up on "street signs," we're going to serve up a rare winner today. why are investors ordering eat? >> and we're going to head to china and our own phil lebeau at the biggest auto show in the world and you can believe i for one am incredibly jealous. >> what's the number one market in the world for ultraluxury rides? not southern california. it's china. coming up on "street signs," we'll show you why ferrari has chosen to make a special edition 458 just for the chinese. that story's coming up.

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starbucks will open stores in all six disney properties in florida and california. the first will open this summer at california adventure. don't expect to see the standard starbucks shop. each store will be dis ni fide. the store will be called the fiddler, fifer and practical cafe after the characters in the three little pigs. and starbucks logos will not be outside. wonder if they will be serving starbucks in mickey mouse uniforms. >> i'm not like mad men but could you tie in the mermaid in starbucks into the little mermaid? >> that would be the logical conclusion. >> just throwing that out there, disney. my fee is 4%. now, the ticker symbol here is eat. but you know them better as chile's and little italy. thanks to higher menu prices and busier restaurants, let's bring

in jeffrey bernstein. this has a good run, you know. i know the comps are up. i know the ticket is up. but when i see a stock up as much as eat is over the last year and a half, you wonder, really, how much could be left in the name? >> it's been an incredible turn around for the chile's brand. they had a solid bottom line but this is the first time we have seen top line result clearly ahead of the industry. seems like they have momentum into fiscal 16. >> yes, they are trying to revamp, chili's. do you feel they are making good progress on that? >> yeah. earlier days it was interior changes and now is it is bigger investments in terms of technology and equipment and starting to reimage a fair amount of stores. it'll take longer time to achieve the kind of second half of their margin story, but they are seeing tremendous early

progress. >> who are they taking business from, if anybody? is it a new diner, or are they going after dine equity, applebee's, darden, et cetera. >> well over the past few years, brinker and their chili's brand have undersales. so they're taking new product and initiatives to bring back lost customers. they also made a conscious effort to push lunch, which was an attempt to take traffic back from the fast casual type concepts, the pinera's and chipotles. >> thank you for joining us. >> thank you. >> lamborghini and ferrari are trying to take hold in the world's fastest growing market. we go behind the wheel in china. >> reporter: in a country that

loves ultra luxury cars, it is not surprising that farriry decided to build a special edition just for the chinese market. china has become the hottest market in the world for ultra luxury cars. it is number one in terms of sales for bentley, rolls royce and lom bore geeny. speaking of lamborghini it has chosen the auto show to unveil the first lamborghini suv. they haven't decide fed they will build the ultra luxury suv. if it is made, the starting price will likely be somewhere around $160,000. >> it is one of the most important markets together with the american market, it's number one or number two. so we felt this was a the time for a brand like for a market that has given us so much. >> check out what maserati just

introduced. this is the kubank. why did they unveil it at the auto show? because two things are hot in china right now, suvs and luxury brands. >> forget those lambors and ferraris, mrs. david beckham is unve ununveil be a special edition in china. this has vintage inspired leather seats, costing $130,000. only 24u7b will be made. the first of which will be sold in china this year. put your hand up for one of those. >> you know, the evoke is a beautiful car. the problem is the roof is about th this high. >> it's made for little people. >> well, yeah, by didn't want it say that. >> i shouldn't have said that.

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nachos anyone? well, that disgusting froth holds the largest nachos, 4,689 pounds of